Challenges faced by franchise entrepreneurs operating in a volatile business environment: a case of the fast food industry in Harare, Zimbabwe
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Received February 2, 2017;Accepted May 15, 2017;Published September 1, 2017
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DOIhttp://dx.doi.org/10.21511/ppm.15(2-2).2017.12
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Article InfoVolume 15 2017, Issue #2 (cont. 2), pp. 436-444
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Cited by5 articlesJournal title: Cogent Business & ManagementArticle title: Evaluating the impact of service encounter incivility on employee job stress, turnover intentions and labor attrition: a study on frontline employees in the fast food service industryDOI: 10.1080/23311975.2024.2355671Volume: 11 / Issue: 1 / First page: / Year: 2024Contributors: Phillip Dangaiso, Paul MukuchaJournal title: Corporate Governance and Organizational Behavior ReviewArticle title: Urbanisation and SME growth in a developing economy: Implications for policyDOI: 10.22495/cgobrv6i2p12Volume: 6 / Issue: 2 / First page: 123 / Year: 2022Contributors: Mapeto Bomani, Evelyn Derera, Mugove MashingaidzeJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:Journal title: African Journal of Economics and Sustainable DevelopmentArticle title: Leveraging Small Business Development Through Employment Contracts: The Mediation Effect of Job InsecurityDOI: 10.52589/AJESD-E2WW2UHCVolume: 6 / Issue: 3 / First page: 129 / Year: 2023Contributors: Ndlovu N., Vakira E., Mutanda B.Journal title: Current PsychologyArticle title: Antecedents and consequences of franchisee interaction in a food service settingDOI: 10.1007/s12144-024-06019-zVolume: 43 / Issue: 27 / First page: 22820 / Year: 2024Contributors: Liu Ting, Jiseon Ahn
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Franchising plays a pivotal role in sustainable economic development through employment creation, improving the standards of living and increasing the growth of entrepreneurship worldwide. However, the volatile business environment in Zimbabwe has a negative impact on the growth of franchising in the fast food industry. The aim of the study was to uncover the challenges of franchising in a volatile business environment in Zimbabwe. The study focused on an under studied area of franchising in the fast food industry of Zimbabwe. The study is important, as franchising can be used as a tool for economic growth and the study breaks a new ground, as no similar studies have been conducted to identify the challenges faced by franchise entrepreneurs in a volatile business environment. Ten qualitative interviews were successfully conducted with franchise entrepreneurs using face to face semi structured interviews as data collection method and thematic coding was used to analyze the collected data. The findings of the study indicate that franchise entrepreneurs face difficulties in obtaining operating licences from the Harare’s City Municipal Authorities and registering their businesses. Electricity power cuts severely affect the operations of fast food businesses. The majority of the entrepreneurs do not have adequate capital to expand and grow their businesses and they fail to meet lending requirements from the financial institutions, top-most among them being the provision of collateral security accompanied by rigid application procedures for funding. Recommendations made include that the government must play an active role in promoting franchising by setting up a vibrant franchise board and speeding up the business registration process.
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JEL Classification (Paper profile tab)L14, L81, L26
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References38
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